To Clear my morgage or not

edited 7 August 2015 at 7:22PM in Mortgage-Free Wannabe
3 replies 568 views
lockalocka Forumite
40 Posts
Part of the Furniture 10 Posts Combo Breaker
edited 7 August 2015 at 7:22PM in Mortgage-Free Wannabe
Hi to all MSE regulars ,

I'm one of the lucky few who was able to by there house back 1999 when house prices where much more affordable, have a fairly large deposit so I have end up with only a small mortgage around £30.000 when I started. Over the years I've mostly only paid the correct amount each month, really only ever made one medium over payment

I have a total of 9 years and 4 months left of my mortgage and around £12,560 to pay currently I'm paying 2% interest around £121.08 a month. I currently have £25,000 in the bank but here comes the really bad part no sort of pension. Hence the reason for saving money. Now I could potentially pay of the mortgage now and still be left 1/2 the money in savings or keep on pay the mortgage. I turned 40 last year and I realise the pension issue is a biggie But on the other hand I'm not as in debt as some people.

Staring Mortgage: £30,000
Current Mortgage:£12,260
Monthly Payments:£121
Remaining Term: 9 years 4 months
Credit: £25,000

Some advice please is it worth me paying of the mortgage change mortgage provider or should look to use the money towards my pension?


  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    All down to personal preference i guess

    personally i would pay it off and then just save for the pension add what ever your mortgage payments are to what you save monthly then least every penny is going towards your retirement

    you could however put the 12k into high interest account and maby make a bit more on it but how much i dont know ?

    My aim is to pay off the mortgage as soon as i can then start saving for the pension this isnt for everyone but its what i feel comfortable doing but this may change as i get only late 20s now
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
  • lockalocka Forumite
    40 Posts
    Part of the Furniture 10 Posts Combo Breaker
    some of it already in some ISA and has been all the way through my savings carer. In the earlier days I was a contractor which is why it was keeping money buy. Nowadays I'm permanent, in the public sector so much more safe. I stupidly opted out of the there pension as at the time i was not thinking I would be there that long
  • SeanymphSeanymph Forumite
    2.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    opt in then.

    Never to late to start - then you will be doing both, saving for your pension AND paying off your mortgage.
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